Positioning and Differentiation
Positioning and Differentiation
UNIT 2
Positioning & differentiation services
Positioning process
Consumer behaviour in services
Consumer purchase behaviour in services
Consumer decision making
Creating the service product-
A. Stages in new service development
B. Service blueprint
OUTLINE
POSITIONING
Positioning is how you provide your product or service brand identification as you go to
market.
Positioning is a strategic process that marketers use to determine the place or “niche” an
offering should occupy in a given market, relative to other customer alternatives.
2. Rank: How does the product or service fare against its competitors in the areas evaluated by
customers deciding what to buy?
3. Attitude: How do we want customers to think about this offering and the benefits it offers
them?
4. Outcomes: What must we do to ensure the product or service delivers on the positioning we
select?
IMPORTANCE OF
POSITIONING
To Make Entire Organisation market oriented
To Cope with Market Changes
To Meet Expectation of Buyers
To Promote Consumer Goodwill and Loyalty
To Design Promotional Strategy
To Attract Different Types of Consumers
To Face Competition
To Introduce New Product Successfully
To Communicate New and Varied Feature Added Later on
DIFFERENTIATION
It is easy when the differentiation of variables is tangible as
in the case of product but, difficult in case of services.
If the product has not many tangible features, then adding
value-added services to the product is one of the methods.
This process is called service differentiation.
It is closely related to positioning.
Differentiation is the process companies use to make a
product or service stand out from its competitors in ways
that provide unique value to the customer.
Differentiation identifies a set of characteristics and benefits
that make a product different and better for a target
audience. Ideally these qualities are things that
1) customers value when they are evaluating choices in a
purchasing decision, and
2) competitors cannot easily copy.
When both conditions exist, the offering is more attractive
to target customers.
POSITIONING PROCESS
Positioning Process is the continuous & reiterative process which
consumer’s mind.
product or service.
The goal of the process is to design an identity that both confirms the value
of the product, service, or brand in the customer’s mind and explains why
Dissonance
Complex
reducing
Variety
Habitual
seeking
CONSUMER BUYING DECISION
Stages in New service Development
SERVICE BLUEPRINT
Service blueprints visualize organizational processes in
order to optimize how a business delivers a user
experience
It is a diagram that visualizes the relationships between
different service components — people, props (physical
or digital evidence), and processes — that are directly
tied to touch-points in a specific customer journey.
Benefits of Service Blueprinting
help businesses discover weaknesses